This Week In Commodities: January 27th Edition

This week saw a stellar performance by the majority of the commodity sector, as positive earnings combined with a robust GDP report to give some much needed tailwinds to this asset class. Among the weeks top gainers was natural gas, which shot up over 10% on the week after stumbling out of the gates for 2012. Wheat, silver, cocoa, and platinum futures all gained more than 5% in the trailing five days, giving traders some new opportunities for the coming week. With new data hitting the markets on a daily basis, and international affairs still managing to shake things up, it can be hard to stay ahead of the curve as far as today’s investing is concerned. In an effort to better educate our readers on current commodity markets, we outline three of the best commodity stories from around the web this past week [see also 50 Ways To Invest In Agriculture].

Natural gas has been in a downward spiral for the past several months, as prices have sunk to historical lows. With warmer than expected weather and sky-high supplies, natural gas has been one of the most pressured commodities over the last month, and it has returned dismal results. However, with prices sitting at such low levels, some believe that now may be the perfect time to buy in. This article, by Sumit Roy, outlines why natural gas may be an enticing buy in this environment and what factors play into its future.

Peter Schiff is one of the biggest names in gold, let alone the investing world as a whole. His opinions are highly respected, as he often has the gains to back up his claims and ideas on trading. Schiff, CEO of Euro Pacific Capital, recently gave his outlook on future gold prices, stating that the re-inflation trade will dominate 2012, sending assets like gold higher. This article, by Dominique de Kevelioc de Bailleul, details Schiff’s prediction and gives a nice outlook on gold prices in the coming year.

It is no secret that commodity investing can be a tall order. In fact, it is estimated that as many as 90% to 95% of all commodity investors come away with losses, but this does not have to be the case. For a number of investors, it is the lack of knowledge on these complex investments that can often lead to diminishing returns. This article outlines ten of the most important guidelines for commodity investors, highlighting everything from “Know Thy Tax Ramifications” to “Do Not Bear False Witness Against Commodity ETNs”.

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